THE POST-MERGER PERFORMANCE OF ACQUIRING FIRMS - A REEXAMINATION OF AN ANOMALY

• 成果类型: Note
• 署名作者: AGRAWAL, A; JAFFE, JF; MANDELKER, GN
• 署名单位: University of Pennsylvania; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.2307/2328956
• 发表日期: 1992
• 页码: 1605-1621
• 关键词: PRICE PERFORMANCE; MARKET; returns

摘要

The existing literature on the post-merger performance of acquiring firms is divided. We re-examine this issue, using a nearly exhaustive sample of mergers between NYSE acquirers and NYSE/AMEX targets. We find that stockholders of acquiring firms suffer a statistically significant loss of about 10% over the five-year post-merger period, a result robust to various specifications. Our evidence suggests that neither the firm size effect nor beta estimation problems are the cause of the negative post-merger returns. We examine whether this result is caused by a slow adjustment of the market to the merger event. Our results do not seem consistent with this hypothesis.